Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding Machine #5027. Machine #5027 Component Single metal housing Motor Date of purchase Jan. 12/18 Jan. 12/18 Blade Jan. 12/18 Depreciation Method* SL DDB SL Est. Cost Residual Est.Life $ 68,000 28,000 8,920 $104,920 $8,000 15 yrs 6,000 1,600 10 yrs 5 yrs *SL = Straight-line; DDB = Double-declining-balance On January 7, 2020, the machine blade cracked and it was replaced with a new one costing $14,200 purchased for cash (the old blade was scrapped). The new blade had an estimated residual value of $2,000 and an estimated life of five years and would continue to be depreciated using the straight-line method. During 2020, it was determined that the useful life on the metal housing should be increased to a total of 20 years instead of 15 years and that the residual value should be increased to $10,500. Required: 1. Prepare the entry to record the purchase of the replacement blade. Answer is complete and correct. No Date General Journal Debit Credit 1 Jan 07, 2020 Machine #5027 -blade (new) 14,200 Cash 14,200 2 Jan 07, 2020 Accumulated depreciation, machine #5027 -blade Loss on disposal 2,928 5,992 Machine #5027-blade (old) 8,920